One year of demonetisation: Bankers say note ban has been good for them

Chanda Kochhar said the note ban led to formalisation of financial savings and increased the flow of funds to mutual funds and insurance

A couple of days ahead of the first anniversary of the Narendra Modi government’s decision to demonetize Rs 500 and Rs 1,000 currency notes, bankers on Monday said the step had been good for them as it resulted in higher deposits and pushed digitisation at a faster pace.

On November 8 last year, Prime Minister Modi had announced that legal tender status of Rs 500 and Rs 1,000 notes would be revoked as part of his government’s drive against black money, counterfeit notes and corruption.

"For the banking sector, I would consider it positive as lots of money has come into the